5 Best Retirement Plans For Corporations
Our 5 best retirement plans for corporations list will introduce you to plans that are right for your corporation. The goal of a retirement plan from the standpoint of a corporation is to attract and retain high-quality employees. Offering employees great retirement plans is one of the most successful ways of achieving this goal.
- Cash Balance Plan A Cash Balance Plan is a qualified retirement plan whose popularity has increased in recent times as an alternative to the traditional defined benefit plan. Cash Balance Plans pay a specified amount of retirement benefits while participants possess individual plan accounts.
- SEP Plan. An acronym that stands for simplified employee pension plan, a SEP is a tax-deferred retirement plant that permits contributions to be made to SEP-IRAs according to a unique calculation. A benefit here is that employers with only one or more employees can get this plan.
- Thrift/Savings Plan. A plan which is a type of qualified defined contribution plan and similar to a profit-sharing plan, a Thrift/Savings Plan encourages after-tax contributions by employees. Many such plans have been converted into traditional 401(k) plans; however, this is an option if you want it.
Employee Stock Ownership Plan. ESOP for short, this plan is both a type of stock bonus plan, as well as a qualified defined contribution plan. The catch here is that participants' accounts are invested in the stock of their employer company. When the employee leaves the company or retires, he receives his vested balance in the form of company stock or cold hard cash. This is definitely one of the more little-known types of plans among our five best retirement plans for corporations list.
- New Comparability Plan. This kind of plan is a take on a traditional profit-sharing plan and splits plan participants into two or more groups, generally due to factors like age and gender. This plan also is special in that it permits companies to maximize plan contributions to workers they consider more valuable while minimizing contributions to other employees!